Renting somewhere whilst having a mortgage

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r-t
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#1
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#1
Hi everyone

I currently have a mortgage on a property with my husband, however we’re in the process of a divorce. Currently he pays the mortgage out of his account and I pay him half every month, we are joint owners so the mortgage is also linked to my current account.

Whilst we’re getting a divorce, I want to move out and rent elsewhere. Salary wise, I can only afford to either pay mortgage or rent. Not both

However when the letting agent checks my credit history, will they see that I’ve got a mortgage and therefore refuse my rent application even though I would stop paying towards half the mortgage when I move out?

I know the most ideal situation would be to cohabitate with my husband and work together to sell the house, divorce etc then go our separate ways but I don’t have that kind of situation.

Thanks
Last edited by r-t; 3 days ago
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londonmyst
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#2
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#2
As long as you have a good credit history with no missed/late payments over the last 18 months and can pass the affordability checks, you should be okay.
Good luck!
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NonIndigenous
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#3
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#3
I've never heard of this being an issue for people. I have never dealt with letting agencies however. I found their fees to be an absolute joke. £500 to "draft a contract"? That anyone can just download online and edit themselves in maybe half a day? Get out of here.

The person you're renting from likely only wants to know how likely you are to keep up with rent payments. If your payslips can keep up with your mortgage and rent, then there's no reason why they shouldn't rent you the property. It is not their interest to have the room sitting around empty.

If it really is a problem, you can try and get someone to act as a 'guarantor' on your behalf. That is someone who legally agrees to pay your rent for you, if you were to fail making the payments yourself. But that's rarely necessary. Many landlords might not even be aware of this option, so you can always make them an offer like this. But obviously you need someone (a close friend or family member) who will also agree to this.
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martin7
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#4
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#4
(Original post by r-t)
I currently have a mortgage on a property with my husband, however we’re in the process of a divorce. Currently he pays the mortgage out of his account and I pay him half every month, we are joint owners so the mortgage is also linked to my current account.
As a side note, you might want to check whether you own the property as joint tenants, or tenants in common. Check with your solicitor whether that's something you need to be concerned about, with regards to your divorce.

However when the letting agent checks my credit history, will they see that I’ve got a mortgage and therefore refuse my rent application even though I would stop paying towards half the mortgage when I move out?
The mortgage will appear on a credit history, but as long as you can afford the mortgage and the rent payment I can't see that it will be a problem.

You can of course check your own credit history for free. There are three main credit reference agencies (Equifax, Experian, TransUnion); request a copy of your Statutory Credit Report from each of them (you can find details of how to do that on their web sites). Your mortgage will appear there.
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r-t
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#5
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#5
The issue is my payslips can’t pay both the mortgage and rent. It’s one or the other.
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Reality Check
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#6
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(Original post by r-t)
.
This doesn't make sense. You've said earlier:

Salary wise, I can afford to do this and have the payslips to prove this

Now you're saying:

The issue is my payslips can’t pay both the mortgage and rent. It’s one or the other.

Which is is?
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r-t
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#7
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(Original post by Reality Check)
This doesn't make sense. You've said earlier:




Now you're saying:




Which is is?
Sorry for the confusion. I’ve edited my original post now. It’s one or the other basically. I can’t afford to pay both
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ReadingMum
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#8
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#8
(Original post by r-t)
However when the letting agent checks my credit history, will they see that I’ve got a mortgage and therefore refuse my rent application even though I would stop paying towards half the mortgage when I move out?
Letting agents will not see that level of information as part of a credit check
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Reality Check
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#9
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(Original post by r-t)
Sorry for the confusion. I’ve edited my original post now. It’s one or the other basically. I can’t afford to pay both
OK, thanks - that makes more sense now!

I would use the payslips as evidence that you can meet the rental payments. Even though the mortgage appears on your credit report, there is nothing to say that your (soon to be ex)husband doesn't make all the mortgage payments on a joint mortgage, and it's not uncommon for there to be an unequal sharing like this. So long as the mortgage has been paid on time regularly, and you don't have any adverse credit information, then all the letting agent is interested in is 'does your salary meet these rental payments' - which it does. You can just say that you do not pay towards the joint mortgage if questioned, and that should be fine.
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Reality Check
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#10
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#10
(Original post by NonIndigenous)
I've never heard of this being an issue for people. I have never dealt with letting agencies however. I found their fees to be an absolute joke. £500 to "draft a contract"? That anyone can just download online and edit themselves in maybe half a day? Get out of here.
Fees like this were banned under the Tennant Fees Act 2019. The only fees a letting agent or landlord can now levy are for: rent which is over a fortnight late (BoE base rate +3%); lost keys (reasonable cost actually incurred); and a tenancy change (£50, but not for a tenancy renewal or changes to the length of one).

Essentially, the letting agents' racketeering has ended. It's a good job it came in when it did - just think what they would have done with free rein during the pandemic, when everyone was chasing a few desirable houses.
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Kutie Karen
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#11
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#11
(Original post by Reality Check)
Fees like this were banned under the Tennant Fees Act 2019. The only fees a letting agent or landlord can now levy are for: rent which is over a fortnight late (BoE base rate +3%); lost keys (reasonable cost actually incurred); and a tenancy change (£50, but not for a tenancy renewal or changes to the length of one).

Essentially, the letting agents' racketeering has ended. It's a good job it came in when it did - just think what they would have done with free rein during the pandemic, when everyone was chasing a few desirable houses.
Oh. Who pays for the reference checks and the admin involved? Surely the agents don't absorb the costs.
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Kutie Karen
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#12
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What happens if the ex husband does not pay the mortgage and you are committed to the rent payments? Won't they come after you as well as you are part of the mortgage too?
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Reality Check
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#13
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#13
(Original post by Kutie Karen)
Oh. Who pays for the reference checks and the admin involved? Surely the agents don't absorb the costs.
Given it can't be charged directly to the tenant, the agents have upped their fees to the landlord to cover their increased costs, and the landlords have thus increased their rents to cover their costs. As usual, the tenants are still paying, just through a different route. At least the disgraceful up-front inflated costs have gone, though.
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Kutie Karen
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#14
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#14
(Original post by Reality Check)
Given it can't be charged directly to the tenant, the agents have upped their fees to the landlord to cover their increased costs, and the landlords have thus increased their rents to cover their costs. As usual, the tenants are still paying, just through a different route. At least the disgraceful up-front inflated costs have gone, though.
sounds about right what you are saying. Does the landlord have to pay each time they have a potential tenant but might fall through if the checks don't work out? How would this work for this vetting and admin?
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Muttley79
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#15
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#15
(Original post by r-t)
Hi everyone

I currently have a mortgage on a property with my husband, however we’re in the process of a divorce. Currently he pays the mortgage out of his account and I pay him half every month, we are joint owners so the mortgage is also linked to my current account.

Whilst we’re getting a divorce, I want to move out and rent elsewhere. Salary wise, I can only afford to either pay mortgage or rent. Not both

However when the letting agent checks my credit history, will they see that I’ve got a mortgage and therefore refuse my rent application even though I would stop paying towards half the mortgage when I move out?

I know the most ideal situation would be to cohabitate with my husband and work together to sell the house, divorce etc then go our separate ways but I don’t have that kind of situation.

Thanks
Moving out is risky - how will you maintain your share of the equity in the house?
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NonIndigenous
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#16
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#16
(Original post by Reality Check)
Fees like this were banned under the Tennant Fees Act 2019. The only fees a letting agent or landlord can now levy are for: rent which is over a fortnight late (BoE base rate +3%); lost keys (reasonable cost actually incurred); and a tenancy change (£50, but not for a tenancy renewal or changes to the length of one).

Essentially, the letting agents' racketeering has ended. It's a good job it came in when it did - just think what they would have done with free rein during the pandemic, when everyone was chasing a few desirable houses.
I forgot they were abolished.
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